Thursday, June 24, 2010

London open: Stocks in the red

Having posted quick gains at the start, London’s top stocks have reversed into the red. 

Miners are the main instigators for the decline with 9 out of the top ten fallers from the sector. Kazakhmys, Rio Tinto, Eurasian Natural Resources and Fresnillo are the biggest decliners so far. 

BP said the lower marine riser package (LMRP) cap containment system was successfully re-attached on its blow-out well in the Gulf of Mexico. 

Yesterday, oil spewed uncontrolled back into the Gulf of Mexico after the cap containing the spill was removed because fluid seemed to be leaking. But the group said the containment cap was “reinstalled on the Deepwater Horizon's failed blow-out preventer (BOP)” at around 1830 CDT on June 23 and the system resumed collecting oil at 1900. 

BP’s peer BG Group confirmed the "success" of a new well known as Tupi on block BM-S-11 in the Santos Basin pre-salt, offshore Brazil. “The information obtained from this well and other wells already drilled, reinforces the estimate of a potential 5 to 8 billion barrels of recoverable light oil and natural gas from the Tupi pre-salt reservoirs,” said the group. 

Oilfield support services group Petrofac is on track to meet full-year expectations and said it has made good progress on the first phase of its Turkmenistan project. 

In other sectors, British American Tobacco has announced that its chief operating officer Nicandro Durante will become chief executive of the maker of Lucky Strike cigarettes in February, when Paul Adams steps down from the role. The Brazilian-Italian will become chief executive designate on September 1 and will be succeeded in his current role by John Day.

DSG International reported a slightly better than expected full-year profit and said it expects profitability to continue to improve in the coming year. The Currys and PC World owner’s underlying pre-tax profit rose to Ł90.5m in the 52 weeks ended 1 May from Ł56.1m last time. Societe Generale was looking for a pre-tax profit of Ł85m, in the middle of the Ł80m to Ł90m consensus range. 

Train, bus and parking firm Go Ahead said it remains confident of meeting full year expectations for the current despite a difficult period for the travel industry. Overall, we are pleased with the group's performance, Newcastle based Go-Ahead said in a statement. However it remains cautious on the near term prospects for the UK economy. 

Software group Micro Focus reported a 39% rise in annual profits and announced the departure of chief financial officer Nick Bray. 

Private label personal care products supplier McBride expects full year revenue growth, on a constant currency basis, to be flat after a weak final quarter and as raw material prices continue to rise. 

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